IIA-CIA-PART3 FREE EXAM DUMPS | ANSWERS IIA-CIA-PART3 REAL QUESTIONS

IIA-CIA-Part3 Free Exam Dumps | Answers IIA-CIA-Part3 Real Questions

IIA-CIA-Part3 Free Exam Dumps | Answers IIA-CIA-Part3 Real Questions

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IIA Business Knowledge for Internal Auditing Sample Questions (Q60-Q65):

NEW QUESTION # 60
An account executive has just designed a Monte Carlo model to estimate the costs of a particular type of project. Validating the model could include all except:

  • A. Applying the model.
  • B. Comparing test results with previously validated models.
  • C. Checking that assumed probability distributions are reasonable.
  • D. Checking for errors in the computer programming.

Answer: A

Explanation:
The Monte Carlo technique is used in a simulation to generate the individual values for a random value. An essential step in the simulation procedure is to validate the mathematical model used. This process involves not only searching for errors but also verifying the assumptions. It also should provide some assurance that the results of the experiment will be realistic. This assurance is often obtained using historical data. If the model gives results equivalent to what actually happened, the model is historically valid. There is still some risk, however, that changes could make the model invalid for the future. The model should not be implemented until this validation process is complete.


NEW QUESTION # 61
Which of the following authentication device credentials is the most difficult to revoke when an employee's access rights need to be removed?

  • A. A biometric device.
  • B. A proximity device.
  • C. A traditional key lock.
  • D. A card-key system.

Answer: B


NEW QUESTION # 62
The following transactions and events occurred during the year:

- $300,000 of raw materials were purchased, of which $20,000 were returned because of defects
- $600,000 of direct labor costs were incurred.
- S750.000 of manufacturing overhead costs were incurred.
What is the organization's cost of goods sold for the year?

  • A. $1650 000
  • B. $1.480.000
  • C. $1 500 000
  • D. $1,610.000

Answer: C


NEW QUESTION # 63
How is the letter x in the standard regression equation best described?

  • A. Coefficient of determination
  • B. Independent Variable
  • C. Dependent Variable
  • D. Constant coefficient

Answer: B

Explanation:
The letters x in the standard regression equation is the independent variable. For example, in a regression to determine the total cost of production, equal units produced. In preparing the annual profit plan for the coming year, Wilkens Company wants to determine the cost behavior pattern of the maintenance costs. Wilkens has decided to use linear regression by employing the equation = a + bx for maintenance costs. The prior year's data regarding maintenance hours and costs, and the results of the regression analysis, are given below and in the opposite column.


NEW QUESTION # 64
Most large-scale computer systems maintain at least three program libraries: production library for running programs); source code library maintains original source coding); and test library for programs which are being changed). Which of the following statements is correct regarding the implementation of sound controls over computer program libraries?

  • A. Only programmers should have access to the production library.
  • B. Only the program librarian should be allowed to make changes to the production library.
  • C. The computer operator should have access to both the production library and the source code library to assist in diagnosing computer crashes.
  • D. Users should have access to the test library to determine whether all changes are properly made.

Answer: B

Explanation:
The program librarian is accountable for, and has custody of, the programs in the production library.


NEW QUESTION # 65
......

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